We expect the lira to decline as long as the pair does not break through last week’s low.

Recommendation of the day on the lira against the dollar

Risk 0.50%.

None of the buy or sell orders were activated on Thursday’s recommendations.

Best buy entry points

• Entering a long position with a pending order from 14.62. levels
• Set a stop loss point to close the lowest support levels 14.46.
• Move the stop loss to the entry zone and continue profiting when the price moves 50 pips.
• Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts up to the high resistance levels at 14.85.

Best Selling Entry Points

• Entering a short position with a pending order from 14.86. levels
• The best points to set the stop loss close the highest levels of 14.98.
• Move the stop loss to the entry zone and continue profiting when the price moves 50 pips.
• Close half of the contracts with a profit equal to 75 pips and leave the rest of the contracts until the support level 14.40

The Turkish lira fell during the second trading day after the Turkish Central Bank’s decision to fix the interest rate last Thursday. This happened against the will of the country’s president, Recep Tayyip Erdogan, who is following a new monetary policy, which includes lowering interest rates. This is to attract real investment away from speculative money that aims to achieve the greatest financial return without making a real addition to the economy. It seems that the decision of the Turkish Central Bank is motivated by the tightening of monetary policy in the world. Where most of the central banks in the world raise interest rates or take measures to reduce stimulus programs, this will cause the Turkish Central Bank to fix the interest rate so as not to go against the worldwide trend at present. In other decisions taken by the Turkish Central Bank this morning, the bank cut the interest rate on reserve requirements, denominated in lira, to zero percent.

On the technical side, Turkish Lira trading declined against the Dollar with the start of the week’s trading, with the US Dollar pair against the Turkish Lira trading in a tight range. This is evident on the chart as the pair settled into very limited ranges before moving relatively strongly before regaining stability within a limited range. The pair is currently trading below the descending trend line over the 240-minute time frame, shown on the chart. The pair also ranged below the moving averages of 50, 100 and 200, respectively, over the four-hour period, while trading between the same averages over the 60-minute period. The pair is trading at the highest support levels which are concentrated at the 14.50 and 14.25 levels respectively. On the other hand, the Pound is trading below the resistance levels at 14.76 and 14.85, respectively. We expect the lira to decline as long as the pair does not break through last week’s low. Please respect the numbers in the recommendation with the need to maintain capital management.